CHALLENGES FACING THE SINGAPORE ECONOMY

If the global economic recovery unfolds as expected, the Singapore economy should enjoy a reasonably good year in 2014 and beyond. The G3 economies to which Singapore remains highly geared are poised to recover in 2014 and build further momentum after that. Singapore's prospects are also boosted by the fact that it sits at the centre of a region that is enjoying a dramatic economic transformation. Even if China's growth slows a tad, its impact will remain powerful while the growth in India and ASEAN will add further vibrancy to Singapore's regional hub. However, under the surface of this cyclical recovery are deeper challenges to which Singapore must adjust. This chapter aims to set out these challenges and assess their likely impact on the Singapore economy. It will consider each of these challenges in turn before concluding with an assessment of their implications.